Knowing the DLV helps nonprofits allocate their resources more effectively. By understanding which donor segments offer higher lifetime value, organizations can tailor their engagement and stewardship strategies to maximize long-term returns.

One of the most significant problems with lacking a donor stewardship plan is the inefficiency and inconsistency it introduces to the donor acknowledgment process. Without predefined stewardship actions for different donation levels (e.g., $250, $1,000, $10,000, $50,000), staff may find themselves constantly trying to determine the appropriate way to recognize and engage each donor.

Rather than viewing social media as the end-all-be-all of fundraising, it's more productive to see it as one piece of a larger puzzle. It's a tool for setting the stage—building awareness, nurturing relationships, and creating a supportive community—that can then be leveraged through other fundraising efforts like major gifts…

At its core, planned giving is akin to the strategic, forward-thinking nature of a 401(k). While the day-to-day operations of a nonprofit might rely on the influx of major gifts, grants, and other forms of immediate funding, planned giving represents the long-term investment in your organization's future. It's about setting the groundwork today for a prosperous tomorrow.

At its core, a nonprofit board's commitment to giving is a testament to their faith in the organization's mission and operational integrity. This isn't merely about the amount each member contributes; it's the act of giving itself that matters. A board that achieves 100% participation in giving sends a clear, unanimous message of support and confidence in the organization's direction and leadership.

The Misconception of Event Fundraising:

Many nonprofits fall into the trap of seeing the event as the endpoint of their fundraising efforts. They pour resources, time, and energy into creating a spectacular night, hoping the event will generate enough revenue to justify the investment.

Aim High, but Be Informed:

When in doubt, it's better to ask for more rather than less. This might seem counterintuitive, but experience shows you're unlikely to offend someone by asking for too much. If anything, a higher request can flatter the donor, implying you see them as someone of significant means and as someone capable of substantial impact. However, this doesn't mean you should pick a number out of thin air. The amount you ask for should be informed by careful research and consideration.

6. Give Them Assignments

The instinct with working with volunteer fundraisers can sometimes be,”Well, I don’t want to overload them by giving them stuff to do, because then they might leave…”. In reality though, if they have agreed to help then giving regular assignments usually helps with volunteer retention rather than hurts it. People want to feel like they are contributing. The balance with this is in not giving them too much at all once. Typically best practice would be small assignment in a short timeframe, rather than longer assignment in a longer timeframe.

Public recognition is two-fold: both recognizing and thanking the donor, as well as drawing attention to the project. While we will always respect donors wishes who wish to be kept confidential, we will usually (not always) try to push back precisely one time.

6. Be Patient:

Decisions about $50,000+ gifts are not usually made overnight. If someone has accumulated that level of wealth where they can give that substantial of a contribution, they likely did not get to that point by making snap financial decisions. That is why it’s important to work on the donor’s timeline, not yours. Cultivating and soliciting major gifts takes time and patience. Celebrate small victories along the way and keep your team motivated. While it might feel like slow going sometimes, even one major gift from a single donor can cover months of work on smaller gifts.

3. Fostering Relationships with Major Donors: Large nonprofits often have dedicated teams for major donor cultivation. Smaller nonprofits typically have less time and bandwidth to devote to fundraising, so the time that they do dedicate needs to be focused on the absolute highest ROI activities.

Surprisingly, grants rank as the third hardest fundraising method, following direct mail campaigns (second hardest) and fundraising events (hardest).

1. Segmenting Lapsed Donors for Targeted Campaigns:

Segment your lapsed donors based on factors such as donation size, frequency, and interests. This allows you to create targeted re-engagement campaigns that resonate more personally with each group. For instance, you might send a different message to someone who was a frequent small donor compared to a one-time large donor. Tailoring your approach to these segments shows donors that you recognize and value their unique contributions, which can be a powerful motivator in renewing their support.

1. Anchoring Bias:

Explanation: Anchoring bias occurs when individuals rely too heavily on an initial piece of information (the "anchor") when making decisions.

Impact on Donor Behavior: In fundraising, the first donation amount suggested can set the tone for subsequent donations. If the anchor is set too low, it may limit the donation size they are willing to give in the future.

Implementing Effective Recurring Donation Programs

1. Easy and Accessible Donation Processes: Ensure that the process of setting up a recurring donation is straightforward and user-friendly. Offer multiple payment options and clear instructions.

Create a Finite Timeline: Matching Gifts are usually most successful when there is a sense of urgency attached to it. If the matching gift has a deadline, people tend to be far more likely to make a contribution to be able to double their contribution.

1. Optimize Your Website for Donations: Your website is often the first point of contact for potential donors. It's essential to ensure that it's not only visually appealing and easy to navigate but also optimized for donations.

Financial Transparency: Let's start with the basics. Showcasing where funds go – operational costs, projects, expenses – demystifies the donation process. Donors love knowing their contributions are well-managed. More and more we are seeing that donors are also okay with contributing to non-traditional areas, as long as the nonprofit is upfront about what they need.

In working in the nonprofit space, we tend to spend a lot of time discussing the benefits of having corporate partnerships as a nonprofit, but less time discussing the benefits of having nonprofit partnerships as a corporation. We tend to know inherently that there are benefits for a corporation to have partnership with a nonprofit, but they are just talked about less than the inverse…

1. Start Early:

The early bird gets the worm, especially in fundraising. Around this time of year we focus on making our appeals perfect, where oftentimes in reality we just have to be first. Beginning your campaign well before Giving Tuesday creates momentum and keeps your cause at the forefront of donors' minds.